(Newswire.net — September 28, 2020) — With all the online investment platforms available these days, making the right decision requires a hefty amount of research. With Yieldstreet, an alternative investment platform, the goal is to provide investors access to opportunities that aren’t usually available to individual investors.
If alternative investments excite you, Yieldstreet may be a good option for you. The platform allows you to invest in various alternative asset classes such as Marine, Art, Commercial, Legal, Real Estate, and Private Business Credit. They also recently launched the Yieldstreet Prism Fund where investors are able to invest across alternative asset classes. Be ready for a higher spend, however, as the minimum investment amount (in most cases) is $10,000.
Investment Basics
- Minimums: Varies by investment. Many start at $10,000. But the newer Yieldstreet Prism Fund starts at $5,000.
- Fees: Yieldstreet carries a management fee of 1% to 2% through other fees may vary.
- Open to Non-Accredited Investors: Yes, through the Yieldstreet Prism Fund which opened in March 2020.
- Liquidity Options: Most Yieldstreet offerings don’t offer liquidity. So if liquidity is important to you that is something to consider.
- Available Investments: The Yieldstreet investment platform excels at offering investments from a wide range of asset classes. Investment opportunities on the platform range in both duration and yield. Since each offering is different, it’s important for you to review each closely.
- Transparency: The site makes it incredibly easy for prospective investors to find relevant information. Yieldstreet makes no attempt to withhold pertinent information and makes doing research and getting started as easy as possible. From the content that we’ve reviewed, Yieldstreet appears to make every effort possible to educate those using their platform.
- Available Support: Yieldstreet relies solely on email support, like many other investment platforms. However, the company does have higher-than-average turnaround times and is incredibly accommodating for new and veteran investors alike. It doesn’t matter how much money you invest with them—they appear to be responsive to all investors.
- Self-Directed IRA: One way to invest in Yieldstreet is through their self-directed Yieldstreet IRA. Unlike some IRA custodians, Yieldstreet doesn’t charge fees for investing in alternative investments. Instead, there is one annual fee that depends on the amount of money you have in your IRA.
The variety of features makes Yieldstreet more appealing than many of its restrictive counterparts. Of course, with all forms of investing, including alternative investments, there’s no formal guarantee of a profit and there’s always a risk factor.
Yieldstreet’s Investment Spread
In recent years, Yieldstreet has invested in a wide swath of offerings across their asset classes. It’s easy to find the necessary information on each offering via their website. These details include offering sizes, investment minimums and maximums, duration, and expected return. Yieldstreet also offers their opinions on each investment offering which details why the platform likes that particular investment as well as the associated risks.
The Yieldstreet Prism Fund
While Yieldstreet was previously only open to accredited investors, the platform recently opened its brand-new Yieldstreet Prism Fund. The fund has lower minimum investment amounts ($5,000) and is also open to all investors, regardless of their accreditation status. This fund allows you to invest in numerous asset classes with a single allocation.
What is Yieldstreet best for?
Whether you’re accredited or non-accredited, you’re probably looking to diversify your portfolio and take advantage of alternative investments that were previously unavailable without possessing a high net worth.
While Yieldstreet does have some shorter duration options than many platforms, it’s also an ideal vehicle for someone who doesn’t require their money back for several years.
It’s also popular if you’re looking to produce income off of your investments without having to micromanage.
It’s the ideal investment vehicle for those who are looking for a bit of flexibility with their offerings and want to try something new and exciting.
Why choose Yieldstreet?
For the longest time, alternative investments were limited to those with connections and the super-wealthy. Unless you held accreditation, you were limited in exactly how you were able to diversify your portfolio.
Now that Yieldstreet has opened up the Yieldstreet Prism Fund to everyone, the platform has created a more even playing field that doesn’t take wealth into account. It gives everyone a chance to diversify in a variety of offerings. Plus, with fair terms, low maintenance and management fees, and solid continued growth, Yieldstreet works as a promising option for investors.
New SEC Requirements
For some time now, the SEC has considered making some changes to its definition of an accredited investor. Finally, at the end of August, the commission announced several key amendments that expanded the definition and made it less exclusive. Previously, one achieved accreditation due to their financial status.
Now, the SEC’s amendments to Rule 501 of Regulation D make it so qualifications expand beyond income or net worth. The potential qualification will now be considered if a natural person holds professional certifications or designations. Additional credentials will also be taken into account.
While the SEC has determined an initial list of accepted designations, the commission stated that it intends to issue ongoing orders from time to time regarding these qualifying factors. Much like an individual’s net worth or income, a prospective accredited investor must take the appropriate steps to verify their credentials before they are awarded the new investing status.
Since this is such a fresh development, it’s difficult to tell how this will impact many investment platforms such as Yieldstreet or whether or not top brands in the industry will alter their own investment policies to address these changes. Currently, however, it stands as a major alteration to a set of longstanding rules and regulations that could have a massive impact on the future of investing.
The Bottom Line
When stacked up against many of the platform’s competitors, Yieldstreet stands out in a tough crowd. The platform is more transparent than many other options which are paramount when you consider the fact that your minimum investment numbers are in the thousands. You also have the ability to invest in a number of private, structured credit deals.
On top of this, many of the investments are backed by assets that provide a potential safety net in the event of a default. Although most offerings are still only open to accredited investors, the fact that they’ve put in the effort to open up their new fund shows that Yieldstreet is looking to broaden their horizons and level out the investing playing field.
If you’re looking for a quality diversification method and the right risk-reward level without having to pursue accreditation, the Yieldstreet platform is a top option.